Bitcoin is now worth $20,000. Bitcoin has plunged to $20,000. The market crashed with the pioneer cryptocurrency. This has led to massive losses. The attack has not stopped at digital assets. No matter what their market capital, all cryptocurrencies have suffered massive losses which have resulted in double-digit losses for all other indexes.
This is not a respecter of market caps
Every index has been hard hit by the cryptocurrency market crash. The crypto market crash has taken out even the bitcoin index, which had put up the biggest fight. In less than a year, the entire market cap has fallen below $1 trillion. The downtrend that has been observed in almost all cryptos is the one created by Bitcoin.
Bitcoin has fought hard. The digital asset has been the top performer once again, posting a loss of -29% in June. But this ‘safe haven’ that investors have been running to for cover is barely holding above the losses posted by the other indexes.
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According to tradition, the Large Cap Index has largely followed Bitcoin’s performance. They performed well in bear markets and the Large Cap Index saw a -32% decline.
With losses equal to -32%, the Mid Cap Index closely followed Large Cap Index. With -33% of total losses for the first half, the Small Cap Index continues to lead the pack.
Massive losses in indexes | Source: Arcane Research
Crypto Market Struggles
It is not only the beginning of crypto market struggles. This began at the close of 2021 after the momentum created by the bull rallies ended. But, other factors have led to more market decline.
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Terra’s collapse was the catalyst for bear runs in full swing. The Celsius Insolvency Rumors, which arose after withdrawals were frozen by the lending platform, further fuelled this trend. The crypto market has lost more than $2 trillion since December 4, when the crash occurred.
Trending BTC at $21,000| Source: BTCUSD on TradingView.com
As stablecoins’ market capitals have increased, all of the losses being suffered by digital assets, which continue to be in high correlation with bitcoin, is allegedly being swallowed up by them. Their market share increased by over 5% after the crash.
The last three years have seen the lowest level of investor sentiment. With the Fear & Greed Index reading in extreme fear with a score of 7, it suggests that investors are not looking to put any money into the market.
Featured image taken from Euronews. Arcane Research charts and TradingView.com chart.
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